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Understanding supply chain impacts on greenhouse gas emissions

Understanding how the supply chain impacts a product’s carbon footprint is essential to helping reduce greenhouse gas emissions. Manufacturers like Stepan are implementing programs that engage suppliers and collectively reduce Scope 3 emissions.

 

From packaging to ingredients, consumers are asking more questions before they make a product purchase. Often, we ask ourselves, “Is this product good for me?” and, “Is this product good for the environment?” At Stepan Company, we know customers have these questions top-of-mind, and we know they are driving ingredient manufacturers across the globe to assess their supply chain.

Sustainability Standards

To help our customers answer these questions, Stepan is not only committed to reducing our internal Scope 1 and Scope 2 emissions, but also to working with our suppliers to reduce the impact of our upstream value chain – part of our Scope 3 emissions. That is why we have created the Partner for Sustainable Supply (PaSS) Program.

The PaSS Program engages selected suppliers of goods and services across the markets we serve to harmonize environmental, social and governance (ESG) performance management and to join efforts in a sustainable business development journey.

According to Our World in Data, the chemical industry contributes 2.2% of the global industrial greenhouse gas (GHG) emissions. With this in mind, it is vital we ask our chemical suppliers for Product Carbon Footprint (PCF) primary data and engage in discussions on raw material alternatives that support reduced GHG emissions.

Sourcing Data

Stepan works closely with EcoVadis, a third-party sustainability assessment company, to evaluate suppliers on a variety of ESG topics, including:

  • Environmental
  • Labor and human rights
  • Ethics
  • Procurement practices

Last year alone, Stepan was able to evaluate more than 280 suppliers who collectively represent about 75% of the raw materials we purchase.

In addition, the PaSS Program took the review process one step further assessing some of our suppliers of packaging, transport, trade services and waste management.

Driving Change

We are committed to continuously improving our practices and to meeting our sustainability goals. As we deepen our supplier engagements through the PaSS program, we will continue to identify opportunities for improvement and continue to deliver a growing portfolio of safer, more sustainable products. 

 

Learn more about our Sustainability practices and our commitment to provide innovative chemical solutions for a cleaner, healthier, more energy efficient world.

 

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